Post Detail

Premarket summary for the broad market

Cryptos sharply lower with bitcoin hitting its lowest level since 2020 is the big news clogging up social media channels as wary investors get stopped out or margined out. Futures for the S&P losing the 3900 momentarily in the ON session as predicted during the past sessions and it barely took us two sessions of this week to move from 4000 to 3900 and more likely than not, while we will fall below 3800 for the core of today’s session, we will attempt to scramble and keep above 3900 into the close. Do I expect a bounce around these lows? Well, for the futures 3846 area will constitute a 20% correction from the top. So that is the extent to which I will limit my price level commentary for today but keep a close eye on S2, if we drop lower, we will have a lot of room to move to S3 and that is a distinct possibility. The ON profile is indicative of a low-volume node at 3928 area. We attempted a revisit here early in the session and could attempt a squeeze higher into that zone or the settlement price either in the premarket or during the RTH session. There is good participation below the lower edge of yesterday’s RTH so participation maybe crowding in here for shorts to profits from the push lower. Overnight participation is net short.

Ideas for trade positioning for the intraday market participant

• The ideal long trade will likely be below S2 but above S3 and somewhere in that 20% retracement area. This is not the preferred trade. If you are counter-trend trading this place a hard stop at 3840 and pray that we close above 3900.
• The ideal short trade is a limit order off 3963.75 giving some room for the move off this bottom with a stop at least 20 points wide at 3982.50 while looking for that 20% retracement of all-time highs in the 3846 as a potential profit target.
• We have Producer Price data in the economic calendar of events for today at 8:30 and Nat Gas consumption at 10:30 followed by the 30-Y T-Note auction just after 1 pm.

Key Levels

Support & Resistance for the intraday

Chart

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